There has been some good news for the bulls over the past few sessions and, if they're able to turn up the heat, we could even see an intermediate trend rally in the first part of 2012. Let's see if that happens though; there have been many false starts over the past few months.
S&P-500 index daily chart:
SPX has broken resistance at 1265. The next big resistance level is nearby. If the index can break above that level (1285), we could see the index make a quick move to intermediate/major resistance at 1345-1365, over the course of next month or two.
The upper Bollinger band is now rising and that opens up a potential pathway for a gathering of momentum to the upside. Volume is back, after the Xmas week lull, as well. Resistance at the 60-line on RSI still hasn't been broken. The bulls will want to put paid to that quickly. A failure to do so will mean that a test of the 20dMA is nigh.
Dow Jones Industrials Averagedaily chart:
INDU has moved to 5-month highs, since having broken resistance at 12250, last week. The upper Bollinger band is rising and potentially opens up a pathway to a move towards intermediate/major resistance at 12850. Resistance from the 60-line on RSI will have to be dealt with in the case of this index as well.
Nasdaq-100 Indexdaily chart:
NDX opened up a relatively big gap at the start of the week and never looked back. The index was able to break minor resistance at 2340, by the close on Thursday. By the end of the week, resistance at the 60-line on RSI was broken and MACD has made a positive 0-line crossover, as well.
The next level of significance is 2400, which is the level of the October/November peaks.
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Let's now take a look at the weekly charts.
S&P-500 index weekly chart:
SPX gained 20pts (1.6%), this week. As the weekly chart (above) shows, the index is testing resistance (at 1285) from the October peak. The good news for the bulls is that the upper Bollinger band is rising, RSI has maintained itself above the centerline and MACD is making an attempt at a positive 0-line crossover. It the last of those signals were to bear fruit, we could see a pretty decent rally take place, over the first half of 2012 or so.
The target for such a move could easily be 1400+.
Dow Industrials Averageweekly chart:
INDU gained 142pts (1.2%). With the upper Bollinger band on this weekly chart now rising, RSI's having stayed above its centerline and MACD's showing a clear-cut positive 0-line crossover, the index stands in good stead to make a solid run over the coming months.
A target in excess of 13750 is on the cards. The caveat is that the index stay above 12250 and its momentum indicators stay above their centerlines.
Nasdaq-100 Index weekly chart:
NDX gained 78pts (3.4%). The index is primed for a sharp move, considering that it has been coiling around the centerlines on RSI and MACD, for many months now. There are a couple of challenging obstacles just above current levels. There is a lot of solid resistance in the 2400-2420 area. Additionally, the upper Bollinger band on this weekly chart is now flat; it needs to rise if the index is to make another bull run.
Conclusion
We're going to see the beginning of a sharp intermediate trend move, within the next couple of weeks. Is it going to be to the upside or the downside? Stay tuned.
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« The Bigger Picture (Weekly Market Update): Jan 8, '12 »
There has been some good news for the bulls over the past few sessions and, if they're able to turn up the heat, we could even see an intermediate trend rally in the first part of 2012. Let's see if that happens though; there have been many false starts over the past few months.
S&P-500 index daily chart:
SPX has broken resistance at 1265. The next big resistance level is nearby. If the index can break above that level (1285), we could see the index make a quick move to intermediate/major resistance at 1345-1365, over the course of next month or two.
The upper Bollinger band is now rising and that opens up a potential pathway for a gathering of momentum to the upside. Volume is back, after the Xmas week lull, as well. Resistance at the 60-line on RSI still hasn't been broken. The bulls will want to put paid to that quickly. A failure to do so will mean that a test of the 20dMA is nigh.
Dow Jones Industrials Average daily chart:
INDU has moved to 5-month highs, since having broken resistance at 12250, last week. The upper Bollinger band is rising and potentially opens up a pathway to a move towards intermediate/major resistance at 12850. Resistance from the 60-line on RSI will have to be dealt with in the case of this index as well.
Nasdaq-100 Index daily chart:
NDX opened up a relatively big gap at the start of the week and never looked back. The index was able to break minor resistance at 2340, by the close on Thursday. By the end of the week, resistance at the 60-line on RSI was broken and MACD has made a positive 0-line crossover, as well.
The next level of significance is 2400, which is the level of the October/November peaks.
-----------
Let's now take a look at the weekly charts.
S&P-500 index weekly chart:
SPX gained 20pts (1.6%), this week. As the weekly chart (above) shows, the index is testing resistance (at 1285) from the October peak. The good news for the bulls is that the upper Bollinger band is rising, RSI has maintained itself above the centerline and MACD is making an attempt at a positive 0-line crossover. It the last of those signals were to bear fruit, we could see a pretty decent rally take place, over the first half of 2012 or so.
The target for such a move could easily be 1400+.
Dow Industrials Average weekly chart:
INDU gained 142pts (1.2%). With the upper Bollinger band on this weekly chart now rising, RSI's having stayed above its centerline and MACD's showing a clear-cut positive 0-line crossover, the index stands in good stead to make a solid run over the coming months.
A target in excess of 13750 is on the cards. The caveat is that the index stay above 12250 and its momentum indicators stay above their centerlines.
Nasdaq-100 Index weekly chart:
NDX gained 78pts (3.4%). The index is primed for a sharp move, considering that it has been coiling around the centerlines on RSI and MACD, for many months now. There are a couple of challenging obstacles just above current levels. There is a lot of solid resistance in the 2400-2420 area. Additionally, the upper Bollinger band on this weekly chart is now flat; it needs to rise if the index is to make another bull run.
Conclusion
We're going to see the beginning of a sharp intermediate trend move, within the next couple of weeks. Is it going to be to the upside or the downside? Stay tuned.
FREE Stock Picks
For the next several months, we will be providing FREE stock picks and options picks at our public listing at stockcharts.com. Please check out the same and also show us your support by voting for us (Click the "Vote Best Public Chart List" at the bottom right of page) - http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2295600
Cheers,
Asher Pinto